Green Ammonia Market Size, Share & Industry Analysis, By Technology (Alkaline Water Electrolysis, Proton Exchange Membrane, and Solid Oxide Electrolysis), By Application (Fertilizer, Marine, Chemicals, and Others), and Regional Forecast, 2024-2032

The global green ammonia market size was valued at USD 47.41 million in 2023. The market is projected to be worth USD 407.18 million in 2024 and reach USD 44,299.43 million by 2032, exhibiting a CAGR of 79.71% during the forecast period.

Green ammonia is an alternative to traditional ammonia production, offering a sustainable and environmentally friendly solution. Unlike conventional methods, which rely on fossil fuels and contribute to significant greenhouse gas emissions, green ammonia is produced using renewable energy sources, natural gas, and a carbon-neutral approach. This innovative process typically involves the electrolysis of water, which yields hydrogen, which is then combined with Nitrogen from the air to form ammonia. This eco-friendly method reduces carbon emissions and minimizes the environmental impact of ammonia producers, making it an attractive option for industries seeking a more sustainable future. As the world shifts toward a cleaner energy mix, the demand for green ammonia is increasing. The confluence of environmental awareness, supportive government policies, technological advancements, and increasing agricultural demands are propelling the development of the green ammonia market significantly.

The global impact of the COVID-19 pandemic on the market is moderate, as it hampered development in many end-use industries due to supply chain disruption of services and technology. Additionally, social distancing norms hindered various production activities. China, the U.S., and India are among the significant countries processing and deploying technology, implementing regional and national level shutdowns of industrial operations to contain the spread of this viral infection. This led to a fall in demand for green ammonia processes.

Green Ammonia Market Trends

Development of Innovative Technologies with Government Support Creates Commercial Opportunities

Governments around the world are providing substantial financial incentives, grants, and subsidies to support research and development in sustainable fuels. These funds help reduce the financial risks associated with pioneering new technologies and encourage private-sector investment. For example, the European Union’s Horizon 2020 program allocated significant funding to hydrogen and Power-to-Gas (P2G) projects, fostering innovation and enabling the commercialization of new technologies across the EU.

Industry players are advancing research and development in green ammonia production. For instance, thyssenkrupp Uhde developed a technology that can produce green ammonia using water, air, and electricity from renewable sources. The process involves Alkaline Water Electrolysis (AW), based on a chlor-alkali electrode technology developed by ThyssenKrupp nucera, and benefits from EPC expertise with more than 500 projects and over 10 GW capacity installed globally.

The potential applications of green ammonia are vast, ranging from agricultural fertilizers to energy carriers in maritime transport. The International Renewable Energy Agency (IRENA) projects that global demand for ammonia could reach 688 million tons by 2050, with green ammonia accounting for a significant portion due to its role in decarbonizing the shipping industry. This shift is driven by the need to reduce carbon emissions, with ammonia expected to contribute approximately 25% of the shipping fuel mix by 2050. Such projections highlight the commercial opportunities arising from government-supported innovation in green ammonia technologies.

The connection between government support and innovative technology development in green ammonia presents significant commercial opportunities. By promoting an environment conducive to investment and innovation, governments can play a crucial role in the transition to a sustainable energy future, capitalizing on the growing demand for low-carbon solutions.

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Green Ammonia Market Growth Factors

Provisions for Promoting Sustainable Agricultural Practices to Unlock New Potentials for the Industry

About 50% of global food production relies on the application of mineral fertilizers. Ammonia plays a crucial role in this process, by capturing airborne nitrogen and converting it into the essential nutrient for crops. Serving as a fundamental raw material for fertilizers, ammonia is vital in ensuring food security. In fact, 80% of the ammonia produced each year is utilized in fertilizer manufacturing. Fertilization enhances plant nutrition, encourages demand, improves crop yield quality, and sustains soil fertility.

Conventional ammonia production is responsible for a substantial share of agricultural emissions, contributing approximately 6% of the total emissions in agricultural value chains. The reliance on fossil fuels generates significant CO2 emissions and poses risks to the environment and public health. As global food demand continues to rise, the agricultural sector faces mounting pressure to adopt more sustainable practices to mitigate its environmental footprint.

Governments worldwide are increasingly recognizing the importance of green ammonia in achieving sustainability goals. Initiatives such as financial incentives for green technology development and regulatory frameworks supporting renewable energy are essential for fostering innovation in this sector. For example, in January 2022, Yara and Lantmännen formed a partnership to produce green fertilizer, demonstrating the collaborative efforts between agricultural producers and technology innovators to promote sustainable practices.

Increasing Focus on Decarbonization and Renewable Energy Integration to Promote Market Growth

Green ammonia, produced using renewable energy sources, is emerging as a key player in the transition to a sustainable energy future, particularly in decarbonizing sectors that are challenging to electrify. Government support for green ammonia includes initiatives such as the U.S. Department of Energy's (DOE) Industrial Decarbonization Roadmap. This initiative outlines strategies to reduce carbon emissions across various industrial sectors, including ammonia production. The roadmap underlines the importance of transitioning from conventional ammonia production, which relies heavily on fossil fuels, to green ammonia production facilities that utilize renewable energy sources such as solar and wind. By promoting research, development, and deployment (RD&D) of green ammonia technologies, the DOE aims to facilitate a significant reduction in greenhouse gas emissions and support the broader goals of the Paris Agreement.

The production of green ammonia involves using renewable energy to power the electrolysis process, which generates hydrogen from water. This hydrogen is then combined with nitrogen from the air to produce ammonia. Unlike traditional methods that emit substantial CO2, the green ammonia production process is carbon-free, aligning with global decarbonization targets. Recent advancements in electrochemical, nitrogenase, and chemical looping processes are enhancing the efficiency and cost-effectiveness of green ammonia production, making it a competitive alternative to fossil fuel-based ammonia.

RESTRAINING FACTORS

High Initial Investment to Establish a Green Ammonia Plant to Hamper Market Growth

The construction of green ammonia plants requires considerable investments, often exceeding several hundred million dollars. This capital is primarily allocated to advanced electrolysis technologies, renewable energy infrastructure, and the Haber process, which synthesizes ammonia from hydrogen and nitrogen. High costs are intensified by the need for specialized equipment and the integration of renewable energy sources such as solar and wind power, essential for producing green hydrogen. As a result, many potential investors may commit to such capital-intensive projects, limiting the number of new facilities entering the market.

The substantial capital costs associated with establishing green ammonia plants may result in higher prices for green ammonia compared to traditional ammonia. This price differential can prevent potential customers, particularly in price-sensitive industries, such as agriculture and energy. Currently, many green ammonia projects rely on government subsidies and incentives to offset initial costs. If these financial supports are reduced or eliminated, the viability of new projects may be at risk, further hindering the green ammonia market growth.

Green Ammonia Market Segmentation Analysis

By Technology Analysis 

Alkaline Water Electrolysis Dominates Due to its High Efficiency and Wide Availability

Based on technology, the market is segmented into alkaline water electrolysis, proton exchange membrane, and solid oxide electrolysis.

Alkaline water electrolysis holds a dominant share of the market due to its high efficiency and wide availability. It is a mature and widely adopted technology for hydrogen production, which is essential for green ammonia synthesis. This method uses an alkaline electrolyte, typically Potassium Hydroxide (KOH), to facilitate the electrolysis of water, producing hydrogen and oxygen. Alkaline electrolysis systems are known for their robustness, scalability, and relatively low operational costs, making them suitable for large-scale hydrogen production.

Solid oxide electrolysis is an emerging technology gaining traction due to its high efficiency and ability to operate at elevated temperatures, which can enhance the thermodynamic efficiency of the electrolysis process. Solid oxide electrolysis utilizes a solid oxide electrolyte to conduct oxygen ions, allowing the direct conversion of steam and electricity into hydrogen.

By Application Analysis

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Fertilizer Segment is Dominating the Market Due to Rising Demand in Agriculture 

Based on application, the market is segmented into fertilizer, marine, chemicals, and others.

The fertilizer application is dominating the green ammonia market share due to the rising demand in the agriculture industry. About 80% of global ammonia production is utilized in the fertilizer sector, primarily for nitrogenous fertilizers such as ammonium nitrate and urea. This dominance is due to the increasing global demand for food, which necessitates higher agricultural productivity. As the global population continues to rise, the need for environmentally friendly fertilizers becomes critical to ensure sustainable agricultural practices.

The marine segment is used in applications for green ammonia. Ammonia is being considered as a potential climate-neutral fuel for shipping and heavy-duty transportation, which are traditionally reliant on fossil fuels. Its use in direct ammonia fuel cells (DAFC) and as a hydrogen carrier is gaining traction due to its high energy density and potential for lower emissions compared to conventional fuels.

REGIONAL INSIGHTS

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The market has been studied geographically across five main regions: North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Globally, the Asia Pacific region dominates the market and accounts for the majority of green ammonia production and consumption. The region has witnessed rapid economic development

and urbanization, driving significant energy demand, with China being the largest producer of ammonia. This rising demand, coupled with increasing environmental concerns and commitments to reduce carbon emissions, has led to significant investments in renewable energy technologies. In India, the state of Odisha has approved a green ammonia plant with an investment of USD 1.51 billion, expected to produce approximately 1.2 million tons of NH3 annually. Additionally, the Odisha government previously approved a proposal from Welspun New Energy for a green ammonia facility with a 700,000 tons per year capacity, and a project by Aegis Vopak to construct an 80,000-ton ammonia storage tank facility in Gopalpur.

Europe has a robust renewable energy sector, with power capacity rapidly expanding. In a significant move toward a sustainable future, Germany has awarded a tender to UAE-based Fertiglobe to purchase a minimum of 259,000 metric tons of green ammonia between 2027 and 2033. This contract, which marks the first of several global tenders aimed at importing green hydrogen derivatives, is a crucial step in Germany's strategy to reduce emissions in hard-to-electrify industrial sectors and decrease its dependence on fossil fuel imports.

North America has established a strong market for hydrogen, with major projects like EverWind Fuels' USD 6 billion green ammonia project in Nova Scotia and Ohmium International's 343 MW green hydrogen electrolyzers in Mexico. Moreover, in October 2023, the U.S. Department of Energy (DOE) announced the Gulf Coast Hydrogen Hub funding, and HyVelocity Hydrogen Hub, centered in Houston, was selected as one of seven regional clean hydrogen hubs nationwide, receiving up to USD 1.2 billion in federal funding from the Bipartisan Infrastructure Law

KEY INDUSTRY PLAYERS

Rising Government Initiatives Aid Domestic Companies to Gain Market Share 

The global market is highly fragmented, with key players and some medium-scale regional players delivering a wide range of power technology at local and country levels throughout the value chain. Numerous companies are actively operating across different countries to cater to the specific needs of customers.

In 2023, Ocior Energy signed a preliminary agreement with the Egyptian government to invest USD 4 billion in a green hydrogen and ammonia project within the Suez Canal Economic Zone (SCZone). The project is expected to be completed in six years, and is slated to begin its first phase of operations in 2027.

List of Top Green Ammonia Companies:

• ThyssenKrupp AG (Germany)


• Nel Hydrogen (Norway)


• Siemens Energy (Germany)


• Yara International ASA (Norway)


• First Ammonia (U.S.)


• ENGIE (France)


• ITM Power PLC (UK)


• Iberdrola (Spain)


• MAN Energy Solutions (Germany)


• KAPSOM plc (China)

KEY INDUSTRY DEVELOPMENTS:

• June 2024: ITM Power announced the inauguration of Yara's renewable hydrogen plant at Herøya Industrial Park, currently the largest facility of its kind in Europe. The 24 MW plant is designed to produce enough green hydrogen to generate 20,500 tons of ammonia annually, which can be transformed into between 60,000 and 80,000 tons of green fertilizer.


• January 2024: Engie and Enaex partnered on the HyEx project in Antofagasta (Chile), where Engie would produce renewable hydrogen, and Enaex would manufacture green ammonia to support the subsequent production of mining explosives.


• December 2023: ENGIE and POSCO were awarded a green ammonia project in Oman with a capacity of up to 1.2 mtpa, planned for export to Korea by 2030. This initiative would incorporate approximately 5 GW of new wind and solar energy capacity, along with a Battery Energy Storage System (BESS) and a renewable hydrogen plant capable of producing up to 200 kilotons annually.


• November 2023: DAI signed an MoU with Siemens Energy to collaborate on the production of green hydrogen derived from renewable energy sources in East Port Said, Egypt. As part of this agreement, Siemens Energy would provide electrolyzers, auxiliary plant systems, and essential equipment to form the hydrogen island for the project. DAI's project, known as Ra, is set to achieve a total production capacity of 2 million tons per year (mtpa) of green ammonia, with production expected to commence in 2028.


• October 2023: thyssenkrupp Uhde was contracted by Hive Energy Limited to provide a pre-FEED (Pre-Front End Engineering Design) for the development of Hive's inaugural green hydrogen and ammonia production facility in Spain. This contract was awarded following an extensive techno-economic analysis conducted for the power-to-ammonia plant.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as technology and leading applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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Report Scope and Segmentation